
Just as people with higher levels of education have fared better during the Great Recession, cities and regions with higher levels of human capital have experienced lower rates of unemployment and higher wages. But human capital, which takes into account only the level of a worker’s education, is a crude measure – some of the world’s greatest entrepreneurs, like Bill Gates and Steve Jobs, are college dropouts.
A while back, I wrote about research done by my colleagues at the Martin Prosperity Institute (MPI), that took data provided by the Bureau of Labor Statistics’ O*NET Project on actual skills (physical skills of the sort used in manufacturing, analytical or cognitive skills, and social intelligence skills like the ability to direct teams, form entrepreneurial new businesses and organizations, and mobilize people and resources behind common causes and objectives) and charted their relations to the economic performance of cities and regions. (more…)